Last week, Vista Outdoor completed the $2.23 billion sale of the company’s “Sporting Products” division — which is known as the Kinetic Group and includes American ammunition brands CCI, Federal Premium, Hevi-Shot, Remington, and Speer — to the Czechoslovak Group (CSG), a Czech conglomerate. With 98 percent of Vista Outdoor shareholders voting in favor of the sale, the transaction marks a significant shift to foreign ownership for several historic American ammunition brands.
CSG, owned by Czech billionaire Michael Strnad, has grown rapidly in recent years, acquiring a majority stake in Italian ammunition manufacturer Fiocchi Munizioni in 2022. Purchasing a considerable segment of the American ammunition market represents a marked rise for CSG, a company that was initially mocked in the region as a “small bazaar” selling “unnecessary scrap.”
In a parallel move, Vista Outdoor is also selling its outdoor recreation brands, consolidated under the name Revelyst, to Strategic Value Partners (SVP) in a separate $1.125 billion transaction expected to close in January 2025. Under the merger agreement with CSG, Vista stockholders will receive $25.75 in cash and one share of Revelyst common stock for each share of Vista common stock they hold. Revelyst has begun trading on the New York Stock Exchange, though it will cease trading once the SVP transaction closes.
To learn more about the Kinetic Group, click here.
the contentious Ammunition sales saga
First announced in October 2023, the 14-month sale process was marked by contentious competition and intense scrutiny. Vista Outdoor fielded multiple unsolicited offers, including a bid from the Colt CZ Group and a series of proposals from MNC Capital. Additionally, the sale to CSG faced scrutiny from U.S. lawmakers, including Vice President-elect J.D. Vance, Senator John Kennedy, and Representative Clay Higgins, regarding potential foreign ownership of critical U.S. ammunition manufacturing capabilities and possible connections to China and Russia. The company has also faced accusations that it violated an arms embargo after its tanks ended up in Azerbaijan during its war with Armenia.
In response to critics, CSG emphasized its U.S. security clearances and ties to NATO, and claimed it has no connections to U.S. adversaries, describing alleged connections to Putin as “nonsense.” Ultimately, Vista Outdoor’s transaction with CSG received approval from U.S. regulators, including the Federal Trade Commission and the Committee on Foreign Investment in the United States.
The Kinetic Group currently operates four ammunition manufacturing facilities across Arkansas, Idaho, Minnesota, and Oregon. CSG has committed to maintaining U.S.-based production and keeping the existing leadership team in place, with the ammunition business headquarters remaining in Anoka, Minnesota.